What Services Do A Sourcing Agent Shenzhen Provide And How To Choose One?

Many small, medium and large-scale businesses are lining up for sourcing products from Shenzhen. Importing products from Shenzhen manufacturers helps them in improving the profit margins. Shenzhen is popularly known as ‘the world’s factory. 

The reason for this is there are many factories in the region. It might sound surprising to you, but more than 85% of the world’s electronics generally come from this place. This city is famous for the manufacture of mobile phones, toys, drones, and televisions. 

Most of the manufacturers here are easily reachable. After you explain your requirements in detail with sketches, they will design a product exactly the way you want. If you have a sample product with you, you can show it to them for better understanding. If you don’t have a sample with you, you can request a sample product from the manufacturers or suppliers. You can then check the sample products and make your final decision.

Many people think that Chinese products are of cheap quality, mostly because of their availability at low prices. This notion however is not true. Shenzhen has the world’s best manufacturers, and they also stand at top of the list for delivering quality. 

So why are the products from China available for such cheap costs? 

Low labour cost, cutting edge technology, cheap raw materials, advanced packaging technology, robust logistics management, and government support for the manufacturing sector, are the main reasons behind low prices. 

In any manufacturing sector, the production cost mainly depends on the labour cost. The more the labour cost, the more the production cost will be. As the labour cost is less in China, the production cost will be less here. There is no doubt that sourcing from a supplier from China can help your business save a lot of money. It also helps you in beating your competitors.

How to find a good supplier in Shenzhen?

One way is to pay a visit to Shenzhen personally for finding a good supplier. However, it may not be possible for all businesses as it may cost more. Moreover, you have to manage everything properly. Not to forget the language barrier that might cost you good opportunities.

You can avoid loading yourself with too many responsibilities because there is a better and cheaper way to source products for China. You could hire a good Shenzhen sourcing agent to find the best suppliers and factories in Shenzhen. These sourcing agents provide a plethora of services to their clients. 

Some of them include –

• Product Designing
• Identifying and shortlisting the factories
• Negotiating the costs
• Quality Control and factory inspections
• Packaging, warehousing, and shipping Arrangement
• Legal support if needed
• And lots more

A sourcing agency or an agent acts on behalf of their clients. They act as a bridge between suppliers and importers. There are many sourcing companies available in China, but you will need to find the ones with good experience and track records

These sourcing agencies have good connections with the local factories and raw materials and suppliers. Their professionals also bridge the language barrier because they speak both fluent English and Chinese. They will help businesses find the right suppliers in China for the best cost. 

What is the difference between a sourcing agency and a sourcing agent?

The main difference between a sourcing agent and a sourcing agency is the number of services they offer. Most of the sourcing agencies provide more services to their clients because they have a team of experienced agents. When you hire a sourcing agent, you cannot expect additional services like payment protection, product photography services, brand labelling, production follow-ups, etc. 

Which one is a better option – Sourcing agencies or Sourcing agents?

It completely depends on your objectives. As every business will have its specific requirements, they have to choose either a sourcing agency or an agent accordingly. Most of the sourcing agencies generally have agents with good communication skills. This means they will communicate clearly with you and the suppliers, and ensure that the production runs smoothly. 

If you are planning to hire a Shenzhen sourcing agent, you must also check their communication skills before hiring. Some of the sourcing agents in China might not be good at speaking English. Hence, it is important to check their communication skills before hiring. 

If you are looking for an efficient sourcing process, then it is wise to choose a reputed sourcing agency. They will have a team of experts and inspectors to handle product portfolios easily. If you don’t require so many services, then you can work with an independent Shenzhen sourcing agent.

How much does a Shenzhen sourcing agent charge? 

Most of the sourcing agents in Shenzhen charge around 5% to 10% of the order value as a fee. Some agents also work for a fixed fee. 

How to find a good sourcing agent in Shenzhen? 

• Choose a Shenzhen sourcing agent who has good experience in sourcing suppliers. The more the experience, the better services you can expect from them. 
• Choose an agent who has an office in Shenzhen. This will help you contact them easily whenever there is any urgency. Take the contacts details and address of your agent. 
• Many of them work only with a website and will not have their office in the city. Such agents might not be reliable. Do proper research on the Shenzhen sourcing agent before hiring.
• Ask them for references. It is one of the easiest ways to find if a sourcing agent is a reliable one or not. Take the details of their previous clients. Spend some time researching them. If you feel that everything is perfect, then go ahead and hire them. 

It is also important to check the trade license before hiring a Shenzhen sourcing agent. The Chinese government is very strict when it comes to following the law. You must request a copy of the trade license from your agent and verify it. If they don’t provide you with a copy of their license, it means something is suspicious. Hire the best sourcing agency today to find the best suppliers in Shenzhen!